TaxTMI 
TaxTMI 
2025 (8) TMI 134
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....s appeals, these appeals are disposed of together by way of this common order for the sake of convenience. ITA No. 2676/Del/2022 - Asst Year 2017-18 - Assessee Appeal 2. The Ground No.1 raised by the assessee challenging the confirmation of the addition by the Learned CIT(A) in the sum of Rs 12,00,000/- on account of cash deposits made in the bank account on 18.11.2016 during the demonetization period. 3. We have heard the rival submissions and perused the materials available on record. During the year under consideration, the assessee has shown income from rent, sale of shares, interest, dividend and long-term capital gains. The return of income for the Assessment year 2017-18 was electronically filed by the assessee on 17-03-2018 declaring taxable income of Rs 41,11,540/-. The learned AO noticed that assessee had deposited a sum of Rs 12 lakhs in cash in its bank account during the demonetization period on 18-11-2016 in specified bank notes. The assessee was asked to explain the source of the same. In response, assessee submitted the cash book for the period 1-4-2016 to 31-03- 2017, wherein it proved that assessee had opening cash balance as on 1-4- 2016 to the tune of R....
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....e and assessee on its part had filed the entire cash book for the whole year wherein it is established that the cash deposit has been met out of the cash balance available as per books, there is no scope for making any addition in the sum of Rs 12 lakhs. Hence, we hold that the source of cash deposits stands duly proved and established by the assessee. The addition made under section 68 read with section 115BBE of the Act is hereby deleted. Accordingly, the Ground No.1 raised by the assessee is allowed. 5. The Ground No. 2 raised by the assessee is challenging the confirmation of disallowance of long-term capital loss of Rs. 1,30,06,057/- incurred on commercial property with BPTP Ltd. The interconnected issue involved therein is not granting the benefit of cost of indexation to the assessee. 6. We have heard the rival submissions and perused the materials available on record. The assessee booked commercial plot with BPTP limited and the payments in respect of the same were made by cheque on various dates commencing from 10-04-2008 till 11-10-2012 totaling to Rs. 73,37,900/-. These payments were made by the assessee to BPTP limited for purchasing commercial plot unit number SC....
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....But the Learned CIT(A) observed that deduction towards indexed cost of acquisition could be granted only against the full value of sale consideration received on 'transfer of a capital asset'. The Learned CIT(A) observed that there was no transfer of capital asset which had happened in the instant case and accordingly the assessee is not entitled for deduction of indexed cost of acquisition resulting in long term capital loss of Rs 1,30,06,057/- and upheld the action of the Learned AO. 9. We find the assessee by making advance payment from 10-04-2008 till October 2012 in the sum of Rs 73,37,900/- had indeed acquired a right in the project commercial plots at Faridabad, Haryana launched by BPTP limited. In fact, the assessee was also allotted the concerned unit number SCO-G06 in the said project. Hence the assessee had indeed acquired a right in a capital asset which is a commercial plot. Since BPTP limited had forfeited the amounts paid by the assessee towards the plot and having observed that there is absolutely no chance of recovery of the said amount which is based on an legal opinion given by an advocate, the assessee chose to write off the same in Assessment year 2017-18 i.....
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....span of a week i.e. from 23-01-2017 to 31-01-2017 at a rate between Rs 440 to 450 per share in secondary market, while the shares were sold in the months of February and March for a price ranging between Rs 245 to 285 per share. Since the price had drastically fallen and the shares were held for a very short span of time, the Learned AO concluded that assessee had deliberately sold the shares at a loss and doubted the genuineness of the said loss and proceeded to disallow the short term capital loss of Rs 1,64,18,473/- claimed by the assessee. Further, the Learned AO also took strength of his decision to disallow the short term capital loss by stating that M/s SS Corporate Securities Limited which is the broker through whom the assessee transacted the purchase and sale of shares of M/s Vishal Fabrics Ltd failed to respond to the notice issued under section 133(6) of the Act. The assessee furnished the complete details of the purchase and sale of shares of M/s Vishal Fabrics Ltd which were done on various dates at various prices prevailing in the secondary market. The Learned CIT(A) tabulated the same in page 40 of his order. The Learned CIT(A) observed that both purchase and sale o....
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....ction. The Learned CIT(A) directed the Learned AO to allow deduction of Rs. 6,05,193/- on account of transfer expenses while computing long-term capital gains. 16. With respect to commission payment of Rs. 17,70,000/- paid to relatives of the director of the assessee company, the Learned CIT(A) observed that assessee had submitted bank statement, income tax return and computation of income of the related parties for Assessment year 2017-18 and the payments were made to them by account payee cheques through regular banking channels after due deduction of tax at source. The Learned CIT(A) also observed that the payments were made on account of commission for sale of property. These findings clearly prove the nature of services rendered by the daughter and wife of director of the assessee company for enabling the transfer of the subject mentioned property. Hence, it is squarely allowable as deduction as transfer expenses while computing long-term capital gains on sale of building. Further there is no bar for making commission payments to the relatives of the director of the assessee company. As long as the services were indeed rendered by those parties for enabling the sale of prop....